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Mixed Retailers in Australia

Australia mixed retailers market: A$18.8 billion industry in 2012

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2014-02-10 16:13:01 - Mixed Retailers in Australia - a new market research report on

The diversified Wesfarmers Ltd led in the Australia mixed retailers market in 2012, with a 42% value share. The retailer saw a slight increase in share, having benefited from strong advertising support. Wesfarmers also benefited from the popularity of its range of low-priced private label products in Kmart, which have been popular with cost-conscious consumers. This strategy drives every day low prices rather than engaging in frequent discounting to attract value-conscious consumers. The value share for Target increased only marginally in 2012, as the mass merchandiser continued to be impacted by dampened consumer spending.

As Australian consumers hunt for the lowest prices for their goods, they are increasingly purchasing online. This is taking sales revenues away from store-based mixed retailers. In



response to this, mixed retailers are following their competitors into online retailing by launching online stores. 2012 saw an expansion in terms of what products are available online from retailers such as Myer Pty Ltd. Mixed retailers are integrating their online, mobile app and in-store offerings to offer an omni-channel strategy to engage with consumers. One example of this is Myer Pty Ltd launching "click-and-collect", where consumers can order products online and pay for them in-store.

Sales of mixed retailers are expected to grow by a 2% CAGR over the forecast period. Consumer spending will remain subdued over the forecast period, as uncertainty regarding the global economy lingers amongst Australian consumers. A higher propensity to save than that witnessed during the early part of the review period will ensure that consumers will continue to seek value for money, and while this will reinforce the consumer tendency to bargain hunt online, it will also benefit mass merchandisers, variety stores and warehouse clubs, as these mixed retail formats have established a strong value for money proposition and trusted private label offerings.

Key Headlines

- Sales in mixed retailers decline by 1% to A$18.8 billion in 2012
- Weak consumer confidence continues to dampen sales
- Outlet numbers decline by 3% in 2012, to 1,382
- Wesfarmers Ltd leads in mixed retailers, with a 42% value share in 2012
- Mixed retailers is expected to grow by a 2% CAGR over the forecast period

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